Few days ago, we posted an article on Fraser Institute’s Mining Survey as obtained from the NAMBC newsletter: Mongolia Drops in Annual Fraser Institute Mining Survey. In this post, we will attempt to break down what it exactly means.
Mongolia Mongolia’s ranking dropped in the Fraser Institute’s Mining Survey – what exactly does it mean?
The “drop in Mongolia’s ranking” was in the “Policy potential index”, which aims to be “a ‘report card’ to governments on the attractiveness of their mining policies”. Please see image below.
As shown above, Mongolia is ranked at the bottom, near countries such as Bolivia, DRC (Congo), Zimbabwe, Philippines, Equator, and Venezuela.
The report revealed that Mongolia ranked near bottom in the following categories (bottom 10 or 15):
- Uncertainty concerning the adminstration, interpretation,and enforcement of existing regulations
- Regulatory duplication and inconsistencies
- Taxation regime
- Infrastructure (includes access to roads, power availability, etc.)
- Political stability
- Labor regulations/employment agreements
- Geological Database (includes quality and scale of maps, ease of access to information, etc.)
- Supply of labor skills
To download the survey, go to Survey of Mining Companies 2009/2010
Survey Background
Since 1997, The Fraser Institute has conducted an annual survey of metal mining and exploration companies to assess how mineral endowments and public policy factors such as taxation and regulation affect exploration investment. Survey results represent the opinions of executives and explo ration managers in mining and mining consulting companies operating worldwide. The survey now covers 72 jurisdictions around the world, on every continent except Antarctica, in clud ing sub-national jurisdictions in Canada, Australia, and the United States.
